Strategic Divestment Signals End of an Era for Land-Based Gaming
Svenska Spel has officially initiated the process of selling its iconic Casino Cosmopol property in Stockholm, marking a significant chapter in the operator’s broader transition away from land-based gaming. The move comes following the closure of the land-based division in 2024, attributed to declining foot traffic, evolving consumer behavior, and regulatory headwinds. Located at Kungsgatan 65, the property—long a hallmark of entertainment in the Swedish capital—will now be positioned for a new role in the city’s commercial fabric.
To execute this high-stakes real estate transition, Svenska Spel has partnered with Cushman & Wakefield and TM & Partners. The firms will offer a comprehensive blend of market analysis, strategic advisory, marketing, and legal counsel. Casino Cosmopol CEO Ola Enquist expressed confidence in the collaboration, citing both firms’ robust track records in managing similarly scaled transactions.
Unlocking New Potential for a Landmark Location
Described by Cushman & Wakefield Partner Sven-Olof Johansson as a “magnificent premises connected to well-functioning office space,” the former casino site—also known as Palladium—offers a strategic location near Stockholm Central Station. Johansson notes its potential future as a headquarters, showroom, or entertainment venue, potentially attracting both domestic and international investors.
This repositioning may reflect broader urban redevelopment trends, where legacy entertainment venues are increasingly converted into mixed-use spaces that combine culture, business, and leisure. The property’s central location offers connectivity and foot traffic advantages, which could command significant market interest.
Economic and Industry Shifts Drive Closure
Svenska Spel’s decision to exit land-based operations is part of a wider realignment driven by digitalisation and regulatory changes. The company had cited continued financial losses in its land-based division, with operating profits climbing 96% year-on-year in Q1 2025 thanks to strong performance in online gaming and sports betting, despite a 4% dip in overall revenue to SEK1.88bn ($200m).
The Casino Cosmopol closure, announced in May 2024, was not taken lightly. Enquist described it as an “emotional” end to an era, particularly as the operator had once championed the integration of entertainment and responsible gambling through these physical spaces.
Legal and Regulatory Landscape
The timing of the sale coincides with a favorable legal development for Svenska Spel. A Swedish court recently overturned a 2024 sanction imposed by the gambling regulator Spelinspektionen, which had accused the company of failing in its duty of care. The ruling found that Svenska Spel had met its obligations, removing a lingering regulatory shadow as the company focuses on future-proofing its business.
Looking Ahead: Svenska Spel’s Digital-First Future
As Svenska Spel pivots fully toward online operations, the sale of the Cosmopol property is both symbolic and strategic. It clears the way for investment in tech infrastructure, product innovation, and market competitiveness in Sweden’s dynamic iGaming landscape. The Cosmopol building, meanwhile, stands ready for a new chapter—one shaped by shifting urban needs, real estate trends, and the ever-evolving relationship between public space and entertainment.
In a landscape where digital-first is the new norm, Svenska Spel’s divestment underscores a fundamental industry truth: the future of gambling lies in mobility, accessibility, and technology—not bricks and mortar.
